Indian rupee fell to a new record low against the US dollar, today, despite strong traction in domestic equity markets. The rupee today opened at 76.09 before sliding to a record low of 76.55 against the US dollar. The rupee has settled at 76.34 against the dollar in the previous session.
In India, over 5,700 coronavirus cases have been reported so far while globally the number has surged above 15 lakh. The Sensex was trading 800 points higher in early noon trade. Foreign institutional investors (FIIs) on Wednesday bought equity shares worth Rs 1,943 crore.
‘The pace of depreciation in the rupee has weakened due to lower rate of outflows and increased intervention from Reserve Bank of India (RBI). Over the next few weeks, the key data to watch will the infection curve of COVID-19, followed by any signs of whether the second wave is emerging in China or not. If the curve continues to flatten across the globe, then it will help Rupee recover lost ground. Otherwise, Rupee can continue to inch towards 77.50 levels,’ said Anindya Banerjee, DVP, Currency Derivatives & Interest Rate Derivatives at Kotak Securities.
Read EquityPandit’s Nifty Outlook for the Week